- October 11, 2019
- Posted by: SMEST
- Category: NRI Investments
When the issuer offers the bonds for purchase, there will be a limited time frame for the subscription. Some of the popular bonds may get oversubscribed in a few days and the issue might get closed for subscription. NRI investors, therefore have very limited time to subscribe for a bond issue. They can either subscribe to it over online brokerage platforms or issue a Power of Attorney (PoA) to a known person, who can apply in physical form, on the NRI investor’s behalf. The bonds in the Indian debt market are available for NRIs on both repatriable and non-repatriable basis.
NRI investments in bonds can be made through both NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts.
- To subscribe on Repatriable basis – to be applied from a demat account linked to an NRE account, if applying online. If applying physically, the application should be through rupee dominated cheque/bank draft from an NRE Account.
- To subscribe on Non-Repatriable basis – To be applied from a demat account linked to an NRO account, if applying online. If applying physically, the application should be through rupee dominated cheque/bank draft from an NRO Account
How to purchase bonds through SMEST:
- The Investor can reach out to our offices via phone, email or whatsapp and enquire for the Quotes for any specific bond that they require.
- Upon confirmation of the Price/Yield, the NRI investor can ask for a ‘Deal Confirmation’ which is a deal sheet that will contain all the relevant information to the trade
- The Investor can choose to settle the trade on the same day, which is known as T+0 (subject to confirming before 14:00 hours) or the next day which is known as T+1.
- The Investor has to furnish the KYC documents to SMEST. For Individuals: POI – Pan Card, POA – Aadhar Card, Cancelled Cheque Copy, Client Master List for DMat Account
- Investor has to make an RTGS for the total consideration amount to BSE – Indian Clearing Corporation Limited
- As soon as the pay-in of the funds is made via the Investor on the Bombay Stock Exchange, the trade will get settled and SMEST will send the investor a settlement report which means the bonds will get credited to the investor’s DMat Account.